STILL ON THE TABLE: Chairman insists BPL “working hard to close” on Shell agreement

STILL ON THE TABLE: Chairman insists BPL “working hard to close” on Shell agreement
Bahamas Power and Light’s (BPL) Clifton Pier power plant. (PHOTO: BWSC)

“We are negotiating the best possible deal for the Bahamian people”

Still no timeline for rate reduction bond

NASSAU, BAHAMAS — Bahamas Power and Light (BPL) is “working hard to close” on its agreement with Shell North America, according to the company’s chairman, Dr Donovan Moxey.

Moxey noted that apart from that arrangement, there are no further plans for liquefied natural gas (LNG).

Bahamas Power and Light (BPL) Chairman Dr Donovan Moxey.

“Anything that we have we have been doing specific to LNG goes all the way back to the RFP (request for proposals) issued back in 2017 that led to the selection of Shell North America,” Moxey told Eyewitness News.

“There have been no further RFPs for LNG and right now, there are no plans to have any further plans for LNG.

“We are still negotiating with Shell; that is something we are working hard to close. Anyone that thinks or says differently is not correct.

“Our position is we are still negotiating with Shell. What we are doing is what we have always been doing and that is negotiating the best possible deal for the Bahamian people.”

In November 2018, the government signed a memorandum of understanding with Shell North America (Shell NA) for the development of a gas-to-power project.

The project would include the development of a gas-fire 220-plus megawatt power plant; marine infrastructure to receive LNG; a gas pipeline to bring gas to shore; and an onshore LNG re-gasification terminal.

BPL has undertaken to cover the costs to construct the entire 220-plus-megawatt power plant at the Clifton Pier site and transfer the assets to Shell NA for its gas-to-power facility.

BPL would have purchased electricity via a 20 to 25-year power purchase agreement.

Moxey also noted yesterday BPL is “moving forward positively” towards its placement of its $600 million rate reduction bond.

“That is moving forward positively as well. We are staying focused on executing that transaction and so, we’re working towards that every single day,” said Moxey.

BPL’s bond offering is part of the utility provider’s efforts to obtain the financing needed to refinance the company’s legacy debt and also fund major upgrades to its transmission and distribution network.